1st Railway Package: implementation in
Member States finally on track

Correct implementation of EU legislation is one of the main priorities
of the Commission. Three years after the deadline to transpose the European
Directives of the 1st railway package, the European Commission
reports today on concrete implementation in the Member States. Adopted in 2001,
this legislative package is the first step aimed at reviving the railways by
gradually creating a “railway area” which is integrated at a
European level, in particular opening rail freight markets and to specify the
conditions under which railway undertakings can access the railway
infrastructure. The report concludes that legal implementation is completed;
however, efforts have to be enhanced in some countries to ensure an effective
regulatory framework and the satisfactory functioning of the rail service
market. Member States must also complete the restructuring of their railway
undertakings and adapt them to the new, open and competitive market context in
the European Union.

Vice-President Jacques Barrot in charge of Transport said:
“Implementation of the first railway package is crucial for
revitalising the EU railway sector. Together with the 2nd railway
package of 2004, the basic regulatory framework is now in place. Market
integration in the rail freight sector already shows positive results in some
Member States – we have witnessed new market entry and improved traffic
performance. The modal share of rail freight has stabilised in Europe. It gives
me hope for the future. The changes which have been started must now be
completed in order to put the finishing touches to a European railway area which
will serve European mobility and competitiveness.”

Concerning the legal implementation of the 1st railway
package[1], the report
underlines that Member States have to ensure the strict neutrality of the
company or body responsible for granting non-discriminatory access to the
railway network. In this respect the Commission considers that a strict
institutional separation between infrastructure management and rail service
provision is one option to ensure the required neutrality. However, other
options such as a holding structure are compatible with EU legislation as long
as the organisational and decision-making independence of the infrastructure
manager is guaranteed through appropriate arrangements. In order to provide
maximum transparency, non-discrimination and contribute to legal certainty the
Commission’s services will assess the variety of solutions put in place
by Member States, using a number of criteria defined in a working document :
http://ec.europa.eu/transport/rail/overview/infrastructure_implement_en.htm

Member States must also endow their rail regulatory bodies and safety
authorities with appropriate resources, competences and expertise. It is only in
this way that they can function effectively to ensure non-discriminatory access
to the network and a high level of safety. The full independence of these
institutions is a key factor for their credibility.

For rail infrastructure charging, the report underlines the need to take the
infrastructure charges for other modes into account. Rail infrastructure charges
should be set at a level corresponding to the actual costs caused by rail
traffic and should not be used for cross subsidies between freight and
passangers.

The Commission also assesses trends in employment in the railway sector.
After years of decrease mainly due to loss of competitiveness and to
restructuring efforts to increase productivity, employment has recently been
levelling off and new employment has even been created in newly set up railway
companies and rail related services providers. In the future, efforts have to be
reinforced to ensure an adequate level of training of the railway staff on open
and integrated markets.Finally the development of safety indicators for rail
transport is very favourable. They show that the number of dead and wounded in
rail accidents, which is already very small compared to other transport modes,
is constantly diminishing while traffic volumes grow .

The report
adopted today was drafted following extensive consultations with stakeholders
and is also based on the findings of a number of independent, external
studies.

[1] Directives 2001/12/EC,
2001/13/EC and 2001/14/EC adopted in February 2001